930. Major Fraud Against the U.S.

Whoever knowingly executes, or attempts to execute, any scheme or artifice with the intent --

to defraud the United States; or

to obtain money or property by means of false or fraudulent pretenses, representations, or promises, in any procurement of property or services as a prime contractor with the United States or as a subcontractor or supplier on a contract in which there is a prime contract with the United States, if the value of the contract, subcontract, or any constituent part thereof, for such property or services is $1,000,000 or more . . . .

The statute has been upheld against vagueness attacks. United States v. Nadi, 996 F.2d 548 (2d Cir. 1993), cert. denied, 114 S. Ct. 347 (1993); United States v. Frequency Electronics, 862 F. Supp. 834 (E.D.N.Y. 1994). For more on the Act, see S. MacKay, The Major Fraud Act After Seven Years: an Update, 64 Federal Contracts Report 1 (Sept. 25, 1995, Bureau of National Affairs). The Criminal Division's Fraud Section Federal Procurement Fraud Unit also has prepared a monograph on the Act, as well as a sample indictment.

The Act also establishes a "bounty-hunter" provision under 18 U.S.C.§ 1031(g), which allows payments from the Department of Justice to persons who furnish information under the Act; however, to date, no fund has been authorized and no payments awarded.